ProShares UltraShort is not very risky given 1 month investment horizon. ProShares UltraShort maintains Sharpe Ratio (i.e. Efficiency) of 0.318 which implies ProShares UltraShort had 0.318% of return per unit of risk over the last 1 month. Our philosophy towards forecasting risk of a etf is to use both market data as well as company specific technical data. We found twenty-eight different technical indicators which can help you to evaluate if expected returns of 1.4913% are justified by taking the suggested risk. Use ProShares UltraShort Coefficient Of Variation of 297.19, Semi Deviation of 2.85 and Risk Adjusted Performance of 0.1779 to evaluate company specific risk that cannot be diversified away.
|Investment Horizon||30 Days Login to change|
ProShares UltraShort Market Sensitivity
|As returns on market increase, returns on owning ProShares UltraShort are expected to decrease by larger amounts. On the other hand, during market turmoil, ProShares UltraShort is expected to significantly outperform it.One Month Beta |Analyze ProShares UltraShort Demand TrendCheck current 30 days ProShares UltraShort correlation with market (DOW)|
β = -3.6891
ProShares UltraShort Technical Analysis
Projected Return Density Against MarketGiven the investment horizon of 30 days, ProShares UltraShort Bloomberg Natrl Gas has beta of -3.6891 indicating as returns on its benchmark rise, returns on holding ProShares UltraShort Bloomberg Natrl Gas are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, ProShares UltraShort is expected to outperform its benchmark. In addition to that, ProShares UltraShort Bloomberg Natrl Gas has an alpha of 2.2797 implying that it can potentially generate 2.2797% excess return over DOW after adjusting for the inherited market risk (beta).
Given the investment horizon of 30 days, the coefficient of variation of ProShares UltraShort is 314.45. The daily returns are destributed with a variance of 21.99 and standard deviation of 4.69. The mean deviation of ProShares UltraShort Bloomberg Natrl Gas is currently at 3.79. For similar time horizon, the selected benchmark (DOW) has volatility of 0.5